The Position Paper of the Commission Services on the development of the Partnership Agreement and programmes in Spain for the period 2014-2020 sets out the key country specific challenges and proposes four complementary and mutually reinforcing funding priorities. The latter represent the priorities that the European Commission would like to co-finance in Spain in the next programming period. The document serves as framework for negotiation between Brussels and the Spanish authorities.

1. Increasing labour market participation and labour productivity, as well as improving education, training and social inclusion policies, with specific attention to youth and vulnerable groups.

• Improving the labour market situation and employment prospects of youth;
• Increasing labour market participation, with particular attention to the most vulnerable groups;
• Improving labour productivity, reducing early school drop-out and increasing participation in vocational education and training (VET) and life-long learning.

2. Supporting the adaptation of the productive system to higher added-value activities by enhancing the competitiveness of SMEs

• Promoting entrepreneurship and SMEs competitiveness, including in agriculture and fisheries;
• Easing access to finance for SMEs, especially through non-grants, revolving financial instruments;
• Assisting SMEs in their internalization process;
• Rationalising the transport system to support economic activity by integrating transport modes in less developed and transition regions.

3. Promoting an innovation-friendly business environment and strengthening the R&D and innovation system

• Promoting an innovation-friendly business environment;
• Boosting R&D and innovation investment;
• Increasing the participation of the private sector in R&D and innovation activities;
• Fostering technology transfer and knowledge sharing;

4. Making more efficient use of natural resources

• Enhancing energy efficiency;
• Implementing climate change mitigation and adaptation measures (including risk management and prevention);
• Improving the management of waste (prevention, recycling), water (demand side measures), waste water and air pollution;
• Protecting biodiversity and marine resources;
• Promoting clean urban transport.